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American Rescue Plan Act of 2021 and Employee Benefit Plans: Next Steps for Plan Sponsors and Administrators

Recording of a 90-minute premium CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, May 26, 2021

Recorded event now available

or call 1-800-926-7926

This CLE course will provide employee benefits counsel, sponsors, and administrators an in-depth analysis of the impact of the American Rescue Plan Act of 2021 (ARPA) on employee benefit plans. The panel will discuss critical provisions of ARPA for plan sponsors and administrators and the impact on qualified retirement plans, pensions, and group health plans. The panel will also discuss critical next steps for employers in light of ARPA.

Description

On Mar. 11, 2021, President Biden signed ARPA. This latest stimulus package contains several employee benefit plan and executive compensation provisions. Employee benefits counsel and fiduciaries must understand the impact of ARPA and implement actions to assist plan sponsors and administrators.

ARPA provides significant health and welfare plan opportunities to individuals who COVID-19 has impacted. It provides for an employer-administered COBRA subsidy opportunity for individuals and increases dependent care flexible spending account limits. Also, ARPA provides federal tax credits to encourage employers to voluntarily offer paid leave of the type required under last year's Families First Coronavirus Response Act, in addition to other key provisions for health and welfare plans.

For pension plans, ARPA contains several provisions designed to provide relief to multiemployer pension plans and their stakeholders. For underfunded plans, it provides financial assistance that is not subject to repayment for plans that are in critical and declining status, have suspended benefits, or are insolvent. ARPA also provides funding relief for employers sponsoring single-employer plans.

Also, Section 162(m) limits the federal tax deduction that a public company may take for compensation paid to a "covered employee" in a tax year to $1 million. ARPA amends the definition of covered employees to include, in addition to the named executive officers, the public company’s next five highest compensated employees.

Listen as our panel discusses critical provisions of ARPA for plan sponsors and administrators and the impact on qualified retirement plans, pensions, group health plans, and executive compensation.

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Outline

  1. Health and welfare benefits
  2. Pension plans
  3. Executive compensation and Sec. 162(m)
  4. Challenges and next steps for plan sponsors and administrators

Benefits

The panel will review these and other key issues:

  • What are the key provisions, challenges, and opportunities of the 2021 American Rescue Plan Act?
  • What is the impact on retirement plan administration?
  • What relief has been provided to multiemployer pension plans and single-employer plan sponsors under ARPA?
  • What are the challenges for health and welfare plans?
  • What are the necessary next steps by plan sponsors and administrators?

Faculty

Bakich, Kathryn
Kathryn Bakich

Senior Vice President, Health Compliance Practice Leader
The Segal Group

Ms. Bakich is one of the country’s leading experts on employer sponsored health coverage. She specializes in...  |  Read More

Goldowitz, Israel
Israel Goldowitz

Partner
The Wagner Law Group

Mr. Goldowitz has more than 35 years of experience in employee benefits, most notably with mergers and acquisitions,...  |  Read More

Olstein, David
David C. Olstein

Partner
Hogan Lovells

Mr. Olstein’s practice focuses on the fiduciary responsibility provisions of ERISA and the prohibited transaction...  |  Read More

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